Medline Plus defines health insurance as a type of protection from the high costs of medical care. In the United States, some employers offer health insurance policies to their employees. These employers usually pay for part of each employee's monthly insurance premium. Individuals may also purchase medical insurance, but this has a higher cost than insurance provided by an employer. People with pre-existing medical conditions may also have difficulty purchasing their own insurance.
Types
Several types of health insurance protect you from the high cost of receiving preventive medical care and emergency medical services. Some of the most common plans in the United States include health maintenance organizations, preferred provider organizations and point-of-service plans. These plans differ in their costs, access to specialists and need to select a primary care physician to oversee your care, but they all offer some coverage of medical expenses. Some of these plans have deductibles, or set amounts of money that you must pay for medical care each year before your insurance provider will cover any costs. Some plans also have co-payments, which you pay each time you see a doctor, have a medical test or spend time in the hospital.
Benefits
Health insurance provides people with better access to medical services and reduces the amount of money you must pay out of pocket for your medical care, making it an important asset. Those who have health insurance get more preventive care and see a doctor when needed, while those without health insurance may delay necessary medical care out of fear of the high costs. A study commissioned by Families USA in 2007 found that people without insurance often go without medical screening and preventive care, according to CNNhealth.com. People without insurance are also less likely to have a regular doctor who knows their medical history and manages their care.
Preventive Care
Health insurance also offers access to preventive care, such as diabetes management services and cancer screening. Because those without health insurance have reduced access to these services, they may develop more serious medical conditions. Some people without health insurance also skip their medications or do not take the prescribed doses of their medications because of the high cost of prescription drugs. This increases the risk of serious medical complications.
Social Consequences
A lack of individual health insurance also has social consequences. When people do not get proper medical care, they spread contagious diseases to their family members, friends and colleagues. Because hospitals cannot turn away unstable emergency patients, many hospitals never receive any payment for the services they provide to uninsured patients. This leads to cuts in needed services and a reduced number of medical professionals available for emergencies. Fewer medical professionals mean longer wait times for medical care and reduced access to needed medical services.
Alternatives
For those without traditional health insurance, health savings accounts, or HSA's, and catastrophic medical coverage provide a minimal amount of protection against the high costs of medical care. Health savings accounts allow individuals to save money for their current and future medical expenses. The U.S. Treasury Department reports that those eligible for HSAs have coverage through a high-deductible health plan, do not have other insurance coverage and do not have Medicare coverage. The contribution limit for this type of plan changes each year based on inflation.
High-deductible health plans, also known as catastrophic medical coverage plans, offer limited coverage of medical services and require plan members to pay a high deductible before the plan provider pays any medical claims. This type of plan works best during emergency situations that require extensive medical care.
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